Corrective Action Plans

Finding 1240245 (2025-005)

Material Weakness 2025

AR

Allowable Costs / Cost Principles Cash Management Material Weakness § 200.430

Federal Program / Assistance Listing Number (ALN) 84.031 Finding Reference Number 2025-005 1. Finding Summary The auditor noted exceptions in payroll cost allocations and time and effort reporting in testing over the Title III program. 2. Management's Position Management agrees with the finding. Man...

Federal Program / Assistance Listing Number (ALN) 84.031 Finding Reference Number 2025-005 1. Finding Summary The auditor noted exceptions in payroll cost allocations and time and effort reporting in testing over the Title III program. 2. Management's Position Management agrees with the finding. Management Explanation Management agrees with the finding and acknowledges that the exceptions related to two (2) Title III employees who need additional training on how to properly complete the relevant forms. 3. Root Cause Analysis The root cause was a gap in understanding of how the time and effort form should be completed and how the payroll cost allocation change should be documented on the personnel action form. 4. Corrective Action(s) Management will offer training on the completion of time and effort reports as well as work with Human Resources to ensure all payroll allocations are actually reflected on hiring documents. Description of Corrective Actions To address this finding and prevent recurrence, the University will strengthen procedures to ensure payroll allocations are supported by approved personnel records and reconciled to certified time and effort documentation. These procedures and reporting controls will be routinely evaluated and reinforced through staff training and management oversight to support sustained compliance and accurate federal reporting. 5. Risk Mitigation (Required - Even if Disagreeing) The University institution recognizes the importance of accurate documentation to support payroll allocations. Accordingly, the corrective actions described above are designed to ensure adequate training and review to ensure compliance and accurate reporting. 6. Responsible Party • Office/Department: Title III Office • Title of Responsible Official: Interim Title III Director • Name (optional): ____________ _ 7. Implementation Timeline • Corrective action implemented: D Yes ~ No • If not fully implemented, expected completion date: December 31, 2026 8. Status of Corrective Action (For Prior-Year or Repeat Findings) D Fully implemented D Partially implemented D Not yet implemented Evidence of Implementation In progress, evidence is not yet available. 9. Monitoring and Sustainability The University will monitor compliance through ongoing supervisory review of payroll allocations and time and effort reports. Review procedures will be routinely evaluated and reinforced through staff training and management oversight to support sustained compliance and accurate federal reporting.

View Audit 414825

Finding 1240244 (2025-004)

Material Weakness 2025

Philander Smith College

AR

Cash Management § 200.305

Federal Program / Assistance Listing Number (ALN) 84.031 Finding Reference Number 2025-004 1. Finding Summary The auditor noted one (1) of eight (8) drawdowns tested for the Title III program were requested in advance of expenditures incurred. 2. Management's Position Management agrees with the find...

Federal Program / Assistance Listing Number (ALN) 84.031 Finding Reference Number 2025-004 1. Finding Summary The auditor noted one (1) of eight (8) drawdowns tested for the Title III program were requested in advance of expenditures incurred. 2. Management's Position Management agrees with the finding. Management Explanation Management agrees with the finding and acknowledges that during the year, we were notified that the Federal 05 system was scheduled for shutdown, which would block all access to Federal drawdowns. At that time, the University had already incurred, or was expected to incur, expenditures under the Title III program. To ensure timely payment to our Title III staff we expedited our procurement process and identified the necessary amount to cover payroll before the 05 shutdown. After subsequently learning that the Title III program would remain unaffected by the 05 shutdown, we decelerated our procurement process, refunded the drawn funds and resumed normal operations to avoid any cash management non-compliance issues. 3. Root Cause Analysis The root cause was an isolated incidence during an anticipated government shutdown. 4. Corrective Action(s) The early drawdown of federal funds was made in anticipation of a potential federal government shutdown to ensure sufficient funding would be available to support ongoing program operations and avoid disruptions in funding during the anticipated shutdown period. The funds were immediately reconciled upon receipt, and the University confirmed that the drawdown was appropriately accounted for. Description of Corrective Actions The University will draw down Federal funds based on documented cash needs, anticipated eligible expenditures, and applicable federal requirements, while documenting extraordinary circumstances. 5. Risk Mitigation (Required - Even if Disagreeing) The University institution recognizes the importance of drawing down Title III funds in accordance with Federal guidelines. 6. Responsible Party • Office/Department: Title III Office • Title of Responsible Official: Interim Title III Director • Name (optional): ____________ _ 7. Implementation Timeline • Corrective action implemented: IZI Yes D No • If not fully implemented, expected completion date: 8. Status of Corrective Action (For Prior-Year or Repeat Findings) D Fully implemented D Partially implemented D Not yet implemented Evidence of Implementation 9. Monitoring and Sustainability The University will continue is monitoring procedures to ensure Title III funds are drawn down in accordance with Federal guidelines.

View Audit 414825

Finding 1240243 (2025-003)

Material Weakness 2025

Philander Smith College

AR

Reporting Subrecipient Monitoring Material Weakness § 200.512 § 200.520

Institution Name Philander Smith University Fiscal Year Ended June 30, 2025 Federal Program / Assistance Listing Number (ALN) Finding Reference Number 2025-003 1. Finding Summary The auditor noted that the University did not submit is audit reporting package and data collection form to the Federal A...

Institution Name Philander Smith University Fiscal Year Ended June 30, 2025 Federal Program / Assistance Listing Number (ALN) Finding Reference Number 2025-003 1. Finding Summary The auditor noted that the University did not submit is audit reporting package and data collection form to the Federal Audit Clearinghouse within the time frame required. 2. Management’s Position Management agrees with the finding. Management Explanation Management agrees with the finding and acknowledges that the identified condition resulted from staffing vacancies and timing delays in the annual audit caused by limited staff. 3. Root Cause Analysis The root cause was staffing vacancies which has caused the University to fall behind on key reconciliations and month-end close processes. With fewer personnel, existing staff had to take on additional responsibilities which has caused slower turnaround times for day-to-day duties. Although staff are cross-trained where appropriate, vacancies disrupt normal workflows. 4. Corrective Action(s) Management is working to fill vacancies and also further cross-train staff. The University is also considering how to best engage temporary staff based on funding available from vacancies. The University acknowledges that although month-end workflows are in place, monitoring needs to be strengthen, especially during peak times. Finally, the University is investing in a new cloud-based Enterprise Resource Planning (ERP) software designed for higher education institutions, Ellucian Colleague, which should automate more business processes and reconciliations. Description of Corrective Actions The University has recently hired a Controller, a position which has been vacant for some time. The Controller will work to strengthen month-end workflows, staff training, and to fill remaining vacancies. 5. Risk Mitigation (Required — Even if Disagreeing) The University institution recognizes the importance of mitigating compliance risk in this area. Accordingly, the corrective actions described above are designed to reduce the risk of inconsistent documentation, misinterpretation of regulatory requirements, and future audit findings. 6. Responsible Party • Office/Department: Business Office • Title of Responsible Official: Vice President for Fiscal Affairs • Name (optional): _____________________________ 7. Implementation Timeline • Corrective action implemented: ☒ Yes ☐ No • If not fully implemented, expected completion date: December 31, 2026 8. Status of Corrective Action (For Prior-Year or Repeat Findings) ☐ Fully implemented ☐ Partially implemented ☐ Not yet implemented Evidence of Implementation Hiring documentation for the Controller. 9. Monitoring and Sustainability The University will conduct quarterly internal reviews of month-end close commencing the period ending June 30, 2026 to monitor progress with audit preparation which will ensure timely Federal Audit Clearinghouse submission. 10. Management Certification I certify that the information provided above is accurate and represents management’s corrective action plan for the audit finding identified. Signature: ________________________________________________ Name: __LaTonya Hayes_____________________________________ Title: ___Interim CFO_______________________________________ Email: __lhayes@philander.edu_______________________________ Phone: __(501) 370-5341____________________________________ Date: ___9/17/2026__________________________________________

View Audit 414825

Finding 1240217 (2025-001)

Material Weakness 2025

Nash Edgecombe Wilson Community Action, Inc.

NC

HUD Housing Programs

The Agency is working with a CPA to catch up on missed filings, and has noted future deadlines for going forward.

View Audit 414811

Finding 1240216 (2025-002)

Material Weakness 2025

Dalewood Estates Senior Housing, Inc.

SC

Subrecipient Monitoring HUD Housing Programs Equipment & Real Property Management

Finding 2025-002: Comments on the Finding and Each Recommendation During prior years, the Board of Directors disbursed funds from the replacement reserve to fund development of other housing developments. Effective June 10, 2022, the Board of Directors entered into a repayment agreement with HUD to ...

Finding 2025-002: Comments on the Finding and Each Recommendation During prior years, the Board of Directors disbursed funds from the replacement reserve to fund development of other housing developments. Effective June 10, 2022, the Board of Directors entered into a repayment agreement with HUD to return funds to the Corporation. The agreement required $5,400, $4,200, and $3,000, all respectively, to be returned to the Corporation during the years ended December 31, 2025, 2024 and 2023. The Board of Directors returned $0, $1,400, and $250, all respectively, during the years ended December 31, 2025, 2024, and 2023. At December 31, 2025, 2024, and 2023, the Board of Directors owes $53,350, $53,350, and $54,750, all respectively, to the Corporation. The Board of Directors should replace the funds that were disbursed from the reserve for replacements without HUD approval in accordance with the repayment agreement entered into with HUD on June 10, 2022. Action(s) taken or planned on the finding Management and the Board of Directors concur with the finding and the auditor's recommendation. The Board of Directors is working on making the delinquent deposits for 2023, 2024, 2025, and all future deposits as required in the repayment agreement entered into with HUD on June 10, 2022.

View Audit 414809

Finding 1240214 (2025-001)

Material Weakness 2025

Dalewood Estates Senior Housing, Inc.

SC

Subrecipient Monitoring HUD Housing Programs

Finding 2025-001: Comments on the Finding and Each Recommendation The Corporation has not filed the 2017, 2018, 2019, 2020, 2021, 2022, 2023, or 2024 federal income tax returns. Tax returns should be filed on a timely basis and all delinquent tax returns should be filed as soon as possible. Action(s...

Finding 2025-001: Comments on the Finding and Each Recommendation The Corporation has not filed the 2017, 2018, 2019, 2020, 2021, 2022, 2023, or 2024 federal income tax returns. Tax returns should be filed on a timely basis and all delinquent tax returns should be filed as soon as possible. Action(s) taken or planned on the finding Management and the Board of Directors concur with the finding and the auditor's recommendation. Management and the Board of Directors are taking steps to file the previous tax returns and have the Corporation's not-for-profit designation reinstated.

View Audit 414809

Finding 1240201 (2025-003)

Material Weakness 2025

Southwestern Christian University, Inc.

OK

Subrecipient Monitoring Significant Deficiency

Gramm-Leach-Bliley Act (GLBA) Compliance Planned Corrective Action: Southwestern Christian University recognizes the importance of full compliance with the Gramm-Leach-Bliley Act (GLBA) and the updated Safeguards Rule. The University will continue working to complete and document the remaining requi...

Gramm-Leach-Bliley Act (GLBA) Compliance Planned Corrective Action: Southwestern Christian University recognizes the importance of full compliance with the Gramm-Leach-Bliley Act (GLBA) and the updated Safeguards Rule. The University will continue working to complete and document the remaining requirements of its written information security program, including risk assessment and mitigation, multifactor authentication, security monitoring, employee training, service provider assessments, incident response procedures, and ongoing oversight. The University will work closely with Nomerel, our IT specialist, along with the Qualified Individual and appropriate University personnel, to review current safeguards, identify remaining gaps, and implement the necessary policies, procedures, and controls to achieve and maintain compliance. The University will also ensure that the required annual assessment and reporting of the information security program are completed and documented. The University will monitor compliance on an ongoing basis and update its information security program as necessary to address changes in technology, threats, and regulatory requirements. Person Responsible for Corrective Action Plan: Dustin Sells (VP of Academic Affairs) - Qualified Individual, in coordination with Mark Arthur (Chief Financial Officer), Nomerel IT personnel, and University Administration. Anticipated Date of Completion: June 30, 2027

View Audit 414793

Finding 1240196 (2025-003)

Material Weakness 2025

City of Hazelwood, Missouri

MO

Reporting

Management will establish formal procedures for the preparation and review of the Schedule of Expenditures of Federal Awards (SEFA). A standardized SEFA preparation checklist will be developed to ensure all federal programs, Assistance Listing numbers, pass-through entities, pass-through award numbe...

Management will establish formal procedures for the preparation and review of the Schedule of Expenditures of Federal Awards (SEFA). A standardized SEFA preparation checklist will be developed to ensure all federal programs, Assistance Listing numbers, pass-through entities, pass-through award numbers, and federal expenditures are accurately reported. Federal expenditures reported on the SEFA will be reconciled to the general ledger and underlying grant records before the schedule is finalized. Management will review grant agreements and award documentation to verify the accuracy of program information and applicable Assistance Listing numbers. Prior to submission for audit, the completed SEFA will undergo an independent supervisory review to ensure completeness and compliance with Uniform Guidance reporting requirements.

View Audit 414790

Finding 1240195 (2025-002)

Material Weakness 2025

Mount Carmel Area School District

PA

Internal Control / Segregation of Duties Reporting

Finding 2025-002 Management Response: The Business Manager has year-end procedures in place to ensure year end adjusting entries are performed prior to the audit. Individual Responsible: Corrina Lesko Anticipated Completion Date: October 1, 2026

View Audit 414786

Finding 1240194 (2025-002)

Material Weakness 2025

County of Del Norte

CA

Reporting Significant Deficiency

Management Response: Management agrees that the single audit was submitted past the March 31, 2026 deadline. While the County of Del Norte accepts ultimate responsibility, the delay resulted from a combination of factors, including communication breakdowns and personnel issues with our external audi...

Management Response: Management agrees that the single audit was submitted past the March 31, 2026 deadline. While the County of Del Norte accepts ultimate responsibility, the delay resulted from a combination of factors, including communication breakdowns and personnel issues with our external audit firm. During the audit, the County Auditor-Controller was notified that key points of contact were nonresponsive. Despite requesting to be looped into all correspondence, the Auditor-Controller was bypassed. This lack of direct communication prevented timely intervention to resolve issues and ensure an on-time filing. Notably, this is the County of Del Norte’s first late audit filing in over 14 years under the current management team. Estimated Completion Date: We fully expect to have our June 30, 2026 audit to be filed by the March 31, 2027 deadline. Responsible Party: Staff from the Office of the Auditor-Controller in conjunction with departmental level staff.

View Audit 414783

Finding 1240182 (2025-003)

Material Weakness 2025

City of Toledo

OH

Subrecipient Monitoring Significant Deficiency Internal Control / Segregation of Duties

The City will establish and implement a formal tracking system and related internal controls for all contracts and projects subject to prevailing wage requirements, including CDBG-funded projects. The system should identify all applicable prime contractors and subcontractors and ensure that weekly c...

The City will establish and implement a formal tracking system and related internal controls for all contracts and projects subject to prevailing wage requirements, including CDBG-funded projects. The system should identify all applicable prime contractors and subcontractors and ensure that weekly certified payroll reports are submitted and reviewed timely in accordance with prevailing wage requirements.

View Audit 414768

Finding 1240181 (2025-002)

Material Weakness 2025

City of Toledo

OH

Subrecipient Monitoring

The City will enhance its internal control over the reporting requirements of the CDBG program by reviewing the U.S. Department of Housing and Urban Development’s federal guidance for reporting.

View Audit 414768

Finding 1240178 (2025-560)

Material Weakness 2025

Holy Cross Head Start, INC

NY

The Organization has implemented new controls and staffing recently that are intended to remediate this matter.

View Audit 414761

Finding 1240177 (2025-559)

Material Weakness 2025

Holy Cross Head Start, INC

NY

The Organization has implemented new controls and staffing recently that are intended to remediate this matter.

View Audit 414761

Finding 1240176 (2025-558)

Material Weakness 2025

Holy Cross Head Start, INC

NY

The Organization has implemented new controls and staffing recently that are intended to remediate this matter.

View Audit 414761

Finding 1240175 (2025-002)

Material Weakness 2025

Township of Bloomfield

NJ

Reporting Internal Control / Segregation of Duties

1. Description: The Township’s IDISC04PR29 Cash on Hand quarterly reports did not agree to the reconciled cash balance in the Community Development Trust bank account. (Finding 2025‐002) 2. Analysis: Policies and procedures be implemented to ensure the CDBG IDISC04PR29 cash on hand quarterly reports...

1. Description: The Township’s IDISC04PR29 Cash on Hand quarterly reports did not agree to the reconciled cash balance in the Community Development Trust bank account. (Finding 2025‐002) 2. Analysis: Policies and procedures be implemented to ensure the CDBG IDISC04PR29 cash on hand quarterly reports are prepared correctly and in agreement with the reconciled cash balances on hand. 3. Corrective Action: Policies and procedures will be implemented to ensure the CDBG IDISC04PR29 cash on hand quarterly reports are prepared correctly and in agreement with the reconciled cash balances on hand. 4. Implementation Date: Ongoing

View Audit 414760

Finding 1240174 (2025-001)

Material Weakness 2025

Township of Bloomfield

NJ

Cash Management

1. Description: The Township did not initiate drawdowns for some community development block grant expenditures that had been paid. Interest earnings exceeded $100 and were not remitted to the U.S. Treasury as required. (Finding 2025‐001). 1. Analysis: Policies and procedures be reviewed and enhance...

1. Description: The Township did not initiate drawdowns for some community development block grant expenditures that had been paid. Interest earnings exceeded $100 and were not remitted to the U.S. Treasury as required. (Finding 2025‐001). 1. Analysis: Policies and procedures be reviewed and enhanced to ensure drawdowns for expenses paid are initiated upon disbursements of the funds. Excess interest earnings should be remitted to the U.S. Treasury as required. 2. Corrective Action: Policies and procedures will be reviewed by the Township’s CDBG consultants and the Director of Finance and said policies and procedures will be enhanced in order to ensure drawdowns for expenses paid are initiated upon disbursements of the funds. Excess interest earnings will be remitted to the U.S. Treasury as required. 3. Implementation Date: Ongoing

View Audit 414760

Finding 1240172 (2025-001)

Material Weakness 2025

N L Resort, INC

VI

Special Tests & Provisions HUD Housing Programs Reporting

Special Test & Provisions – Contract Rent Adjustment Name of Contact Person: Mona Barnes, President Corrective Action: Management is working on compiling the documentation needed to submit the request for renewal of the PRAC and rent adjustment. Proposed Completion Date: July 31, 2026

View Audit 414758

Finding 1240171 (2025-002)

Material Weakness 2025

Tnkids Nutrition

TN

Cash Management Reporting Significant Deficiency

Management Response: The Organization agrees with the auditor’s finding and will take actions to ensure that future documentation and reporting meets the standards required.

View Audit 414756

Finding 1240170 (2025-001)

Material Weakness 2025

Tnkids Nutrition

TN

Reporting

Management Response: The Organization agrees with the auditor’s finding and will take actions to ensure that future forms are filed timely.

View Audit 414756

Finding 1240166 (2025-002)

Material Weakness 2025

Noble County

OH

HUD Housing Programs

The County Commissioners and Auditor will monitor this internally.

View Audit 414736

Finding 1240165 (2025-001)

Material Weakness 2025

Noble County

OH

Subrecipient Monitoring Reporting HUD Housing Programs § 200.329

The County Commissioners and Auditor will monitor this internally.

View Audit 414736

Finding 1240164 (2025-002)

Material Weakness 2025

Western Pacific Regional Fishery Management Council

HI

Reporting § 200.302

The Council will strengthen its internal controls to ensure expenditures are recorded timely and accurately in the general ledger and properly classified to the applicable award, budget category, and reporting period in accordance with 2 CFR 200.302(b)(2). The Fiscal Administrator is responsible for...

The Council will strengthen its internal controls to ensure expenditures are recorded timely and accurately in the general ledger and properly classified to the applicable award, budget category, and reporting period in accordance with 2 CFR 200.302(b)(2). The Fiscal Administrator is responsible for recording expenditures and preparing timely and accurate Federal Financial Reports (SF-425). Federal Financial Report due dates are maintained on the Council Calendar, with automatic notifications issued before each due date to the Fiscal Administrator, with a copy to the Administrative Officer. At the end of each six-month Federal Financial Reporting period, the Fiscal Administrator will review the general ledger and Profit and Loss reports to identify expenditures incurred during the reporting period and verify that expenditures are recorded in the appropriate accounting period and properly classified to the applicable award and account. The Fiscal Administrator will coordinate with appropriate program staff to resolve discrepancies and make necessary adjusting journal entries before the Federal Financial Report is finalized and submitted. Adjusting journal entries will be supported by appropriate documentation and reviewed by the appropriate program staff and/or Administrative Officer, as applicable. After a Federal Financial Report has been submitted, subsequent adjustments to the reported period will require documented review and approval and an assessment of whether a corrected Federal Financial Report is necessary. Prior to submission of each SF-425, the Fiscal Administrator will provide the Administrative Officer with the draft Federal Financial Report and supporting Profit and Loss/general ledger reports. The Administrative Officer will review and verify that reported expenditures and Federal revenue received agree with the Council's accounting records and supporting documentation. Any identified discrepancies will be resolved before submission. Documentation supporting the review, including the general ledger/Profit and Loss reports, Federal Financial Report, and applicable adjusting journal entries, will be retained in accordance with the Council's record retention requirements. These controls are intended to ensure expenditures are recorded in the proper reporting period, accurately classified, reconciled to the general ledger, and appropriately reflected in Federal Financial Reports prior to submission.

View Audit 414735

Finding 1240163 (2025-003)

Material Weakness 2025

Mid-Atlantic Clean Hydrogen Hub, Inc.

PA

Allowable Costs / Cost Principles Subrecipient Monitoring Cash Management

Contact Person: Manny Citron, Chief Operating Officer Recommendation: MACH2 should review and update its internal control policies and procedures to ensure transactions are consistenly processed, approvals are clearly documented, and indiviudals responsible for the recorded of transactions are aware...

Contact Person: Manny Citron, Chief Operating Officer Recommendation: MACH2 should review and update its internal control policies and procedures to ensure transactions are consistenly processed, approvals are clearly documented, and indiviudals responsible for the recorded of transactions are aware of their responsibilities. Action: MACH2 will continue to strengthen and refine its internal control policies and procedures thorughout 2026, with a focus on improving the consistency of processing transactions, documenting payment approvals, and providing clear roles and responsibilities for individuals involved in the recording of financial transactions. Date of Completion: December 31, 2026

View Audit 414731

Finding 1240162 (2025-001)

Material Weakness 2025

Jewish Home Lifecare, Manhattan

NY

Allowable Costs / Cost Principles Reporting § 200.430

The findings from the December 31, 2025, schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the number assigned in the schedule. FINDINGS – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Finding 2025-001 – Allowable Costs/Cost Principles – U.S. De...

The findings from the December 31, 2025, schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the number assigned in the schedule. FINDINGS – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Finding 2025-001 – Allowable Costs/Cost Principles – U.S. Department of Labor (Assistance Listing Number: WIOA Cluster - 17.258, 17.259, 17.278) Passed through New York City Department of Youth and Community Development (Contract# 9060060), Workforce Development Corporation (Contract# 2025WDC005) – (Material Weakness) Material Weakness Recommendation We recommend that management implement policies, controls, and procedures to ensure that time and effort is recorded based on actual effort and approval by appropriate individuals is documented at least monthly to comply with applicable cost principles. Action Taken The New Jewish Home has implemented policies and procedures to ensure that employee time and effort charged to federally funded and other restricted programs is supported by contemporaneous documentation reflecting the actual effort performed. Employee time is recorded through the organization’s established timekeeping process and is reviewed and approved by the employee’s immediate supervisor on a payroll-period basis. This control is performed every pay period and therefore occurs more frequently than the minimum monthly review and approval standard referenced in the finding. Supervisory approval is intended to provide reasonable assurance that recorded time and effort is accurate, supported, and consistent with the employee’s actual work performed and the applicable funding requirements. Management will continue to monitor compliance with these procedures and will reinforce the requirement that time and effort records be accurately maintained and appropriately approved in accordance with organizational policies and applicable federal cost principles. The New Jewish Home will also retain the applicable timekeeping and approval documentation as evidence of the control’s operation. Completion Date: October 5, 2026

View Audit 414730

Corrective Action Plans

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